DAYTON — A proposal by Caterpillar Logistics Services to build a $68.6 million distribution facility in Clayton and bring new 500 jobs is the best economic news local officials have heard in a while.

“I’m very happy that 'Cat’ has recognized our strength in logistics and distribution,” said Montgomery County Commissioner Debbie Lieberman. “Although we are aware that the project is not quite finalized, the approval of the tax credits on Monday will be an important step.”

“If this is finalized, I will be so happy because it is a further validation that Dayton is a great place for logistics and distribution,” said Montgomery County Commission President Dan Foley.

Although a Caterpillar official on Friday, Dec. 4, declined to confirm the plan, the company is one of 15 listed on the agenda for the Ohio Tax Credit Authority meeting on Monday in Columbus. The authority considers requests for the Ohio Job Creation Tax Credit, which provides companies that expand or locate in Ohio with a refundable tax credit on insurance premiums, commercial activity and income, according to Robert Grevey, public information officer for the Ohio Department of Development.

Caterpillar’s request for state tax credits will be considered Monday, Dec. 7, by the five-member tax credit authority, which includes Montgomery County Administrator Deborah Feldman.

The logistics company is a subsidiary of Caterpillar Inc., a Peoria, Ill.-based, Fortune 100 heavy equipment manufacturer. Caterpiller spokeswoman Bridget Young declined comment on the project, saying “at this time we have nothing to announce.”

County commissioners earlier agreed to award a $700,000 Economic Development/Goverment Equity grant to “Project UDC,” which officials now confirm is Caterpillar. The ED/GE application said a 1.6 million-square-foot facility would be built at Clayton’s Commerce Park, 6611 Hoke Road. The company’s application estimated payroll at $20 million annually.

The new facility would bring 500 jobs, the largest number of new local jobs since Collective Brands Inc. in February opened its Payless and Stride Rite shoe distribution facility in Brookville. Collective Brands employs more than 400 people.

Phil Parker, president and chief executive of the Dayton Area Chamber of Commerce, said he was unable to comment specifically on Caterpillar’s plans, but he said attracting larger investments in key industries such as logistics and distribution will attract “more and new businesses in the future.”

Also on Monday the tax credit authority will consider a request by Composite Technologies Co., which wants to expand its Dayton operation and add 50 jobs. The company will invest $2.5 million renovating and equipping 60,000 square feet at 943 Woodley Road, Dayton, to add a mixing and molding division, said Ken Stacherski, president.

The company, a compression and injection molder of polypropylene composite materials, currently employs 70 people at its 401 N. Keowee St. headquarters. Stacherski said the new jobs will pay an estimated $30,000 to $70,000 annually.

The company is awaiting final approval of a $125,000 Economic Development/Government Equity Grant from Montgomery County and expects to begin construction on the $2.5 million facility in 2010, he said.

“We’re always excited when one of our advanced industries is expanding and we’re happy that they’ve chosen to stay here in Dayton, because they had options,” said Timothy Downs, Dayton deputy director for economic development.

Staff writers William Hershey and Doug Page contributed to this report.

Contact this reporter at (937) 225-7455 or lhulsey@DaytonDailyNews.com.